reseller incentive report

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Post on 10-Jan-2017




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  • Backpay estimating the program resultsBased on Participants Survey and Sell Out AnalysisDone on a base of my real report

  • BackPay program is designed to handsomely reward those resellers who increase both the volume of products and the number of product categories they sell. Official Program BrochurePrimary success indicators:Program motivates participants to increase amount of sold Partnumbers and number of product categories Evaluation of program success:Analysis of resellers survey results to see if participants confirm changed buying behavior and have positive attitudes towards BackPay

    Survey of 400 BackPay resellers from 8 EMEA countries was conducted.Analysis of resellers purchasing patterns prior and after BackPay enrollment to estimate motivational effect

    Analysis will be based on sell out reports; Only BackPay resellers signed up in Q1, Q2, and Q3 will be considered to ensure at least 1 year of pre- and post-signup history; Analysis findings and identified patterns will be applied to all enrolled resellers

  • Has the BackPay program motivated you to increase your overall sales?-Survey Question

    Most frequently mentioned obstacles to increased sales were:Limited market demand;Low priority given to products (non-core business);Complicated rules and delayed rebates

  • Average of 17 units per active reseller prior to BackPay enrollmentAverage of 19 units per active reseller after BackPay enrollment

    12% increase in average quarterly # of PartnumbersSergey Sleptsov

  • Sales reports show consistent increase in average amount of Partnumbers per active program participant after program enrolment;Observed average increase in quarterly Partnumbers ranges from 2 to 6 units or from 12% to 40%;At least part of that increase is caused by the program motivation as confirmed by the surveyed resellers;To estimate Programs incremental revenue we will use optimistic and pessimistic approaches as outlined further

    Sergey Sleptsov

  • Optimistic Approach:Average quarterly number of Partnumbers per active IT reseller remained steady in EMEA throughout obseved period so any increase among BackPay resellers should be associated with Programs motivation;This can be illustrated by trending average Partnumbers per non-BackPay reseller in countries with stagnating IT markets (see chart below)Here well assume quarterly incremental Partnumbers increase of 4 units per active BackPay reseller

    Pessimistic Approach:Average quarterly number of Partnumbers per active IT reseller in EMEA increased by 1-2 units in observed period;This can be illustrated by trending average Partnumbers per non-BackPay reseller in countries with healthy IT markets (see chart below);Here well assume quarterly incremental Partnumbers increase of 2 units per active BackPay reseller

    Sergey Sleptsov

  • Pessimistic EstimateAt average price of a sold Partnumber of and assuming average increase in quarterly sold Partnumbers per active BackPay reseller at 2 units Programs incremental revenue in EMEA up to Q3 is estimated at :Optimistic EstimateAt average price of a sold Partnumber of and assuming average increase in quarterly sold Partnumbers per active BackPay reseller at 4 units Programs incremental revenue in EMEA up to Q3 is estimated at :Sergey Sleptsov

  • Has the BackPay programme motivated you to increase the number of categories of products you sell?-Survey Question

    24% of these began selling Accessories; 21% - began selling Racks; 9% - mobiles and cables

    Most frequent obstacles to increased sales were:Limited market demand sell only whats required by customers;Relatively high prices for some products;Complicated rules and delayed rebates

    31% of BackPay resellers confirmed sales of new categories during a similar surveySergey Sleptsov

  • Chart shows what shares of active resellers buy racks comparing patterns of BackPay participants to non-BackPay resellers;Greater shares indicate greater acceptance of the category by the segment;Shares of resellers buying racks notably increase for all observed, but the rise is much steeper among BackPay members;Penetration Rate was generally higher with BackPay participants even prior to their sign-up for the program;Observed upward curve among BackPay members is likely to be a combination of program motivation and of their rack-friendly attitude

    Source: Sell Out Reports;Samples (Depending on Quarter):

    EMEA BackPay Resellers: 189 235 companies; Non-BackPay Resellers: 2,085 5,293 companies;Sergey Sleptsov

  • ease of the registration processclarity of information in describing the overall programclear information on who is eligible for the BackPay programtimely notification of when you have been accepted into the BackPay programclear information on how the rebate is calculated1=Very dissatisfied 2=Dissatisfied 3=Neither satisfied nor dissatisfied4=Satisfied 5=Very satisfied Rebates calculations are too complex;Overall satisfaction with the program is quite low suffering from delayed rebate checks and lack of timely status informationOverall satisfaction with 's BackPay program

    Most of the areas rated below satisfaction level!Sergey Sleptsov

  • a statement as to what the heck its all about never received anything since signing 2 years agoclear definition of what you get for whatexplanation of calculation and timing of paymentfeedback is too slow. Often we dont know how we are doingneed to receive payments in good time and need info on how they are calculated on the actual sales - have not received a cheque since last Novemberrebate-calculation should be simpler than what it is, I find it a bit difficulttoo late to have the resultmake it simpleinformation on what its all about and how it workslike to know how it works what they pay when and whyMore explanation more clear programProvide feedback and more information about what I should sellSergey Sleptsov

  • Resellers are not getting the desired attention from 40% of them did not speak to an rep in a year:Sergey Sleptsov

  • contact people - communication do not hear from them about anything maybe a little bit more hands on from account managers - we chase them rather than them contacting ushaving more contacts with the 's RepsI do not have any Rep. or any contact name to help me out for a better understanding of the programI never got any contact, maybe that's why I never proposed/pushed on to my clientsI never spoke to any Rep. maybe if I could see/talk to somebody will help my salesmore contact between and the reseller to explain and give some newsmore contacts such as Reps coming around the office for example

    Sergey Sleptsov

  • Training events availability is not meeting the demand either majority of BackPay resellers did not have any in a whole year despite claimed interest:

    Sergey Sleptsov

  • Majority of Resellers prefers live events:Sergey Sleptsov

  • Channel is still heavily focused on market not more than 1/3 of resellers is looking outside the boundaries of the traditional business despite the available product range and programs motivational appeal:Ranked #2 at 42%Sergey Sleptsov

  • A good idea having few private lessons about the Products starting from the Low Level up to the High Level products training closer to my cityHaving more training on Racks and other high level products categoriesI would like having more information about the high levels productsmore info and trainingmore training over web-cast for reseller

    Sergey Sleptsov

  • BackPay showed only limited success in changing buying behavior of the program participants 30% of them confirmed motivation to sell more units and just 17% - motivation to increase Partnumber breadth;These relatively low results as well as generally low satisfaction with the program are primarily caused by the combination of the following factors:Rebate calculations rules are quite complicated for an average reseller and lack clarity in showing what exact reward is given for a particular action. This is an issue that was widely expressed by respondents;Program's motivational appeal is damaged further by s inability to provide up to date rebate status to participants and even to deliver rebate cheques in a timely manner. These problems caused by the state of our internal processes become a great de-motivator to the involved in promoting the program ;Resellers much more than their counterparts - are still heavily focused on the side of business paying little attention to (or having little knowledge of) the incremental revenue opportunities offered by the continually expanding portfolio. That conservative attitude creates extra barrier to the program objective of increased product range. Resellers express unfulfilled need for a greater support from reps that can become crucial in gaining the product knowledge.Even that limited progress resulted in a positive ROI generated by the program.

    Sergey Sleptsov